Niko Company produce and sell a single product called Mac. The product is sold at RM32 per unit and the normal production level of the product is 60,000 units each year. The company's total cost at this level of activity are given below: RM Direct materials 600,000 Direct labour 270,000 Variable manufacturing overhead 138,000 Fixed manufacturing overhead 300,000 Variable selling expenses 72,000 Fixed selling expenses 210.000 Total cost 1,590,000